Have you looked into maybe expanding into photography? You could display photos of sites that people see while on vacation and offer a small line of cameras and accessories. Put it in a small corner of the shop and then you have something that might catch another side of tourism. Dad fly fishes, kids fishing and mom or dad taking photos. Photography is an area you already have a lot of experience in. Just an idea. Any thoughts?

I agree with Flyred. And while competition in the electronics market is extremely strong especially with the on line crowd, you could specialize in the small light weight water proof variety for fly fishing. i do not know of the profit potential for this line, but to pad that teach classes.
Managing the balance between payroll and profit margin is a constant battle as you well understand. Because you understand this it makes you way ahead of most small businesses. In my industry this balance coupled with understanding cash flow. This is very similar to a conversation I had with a long time customer earlier this week; our business environment has changed from buying right to making a profit to selling right to make a profit. But from your fishing reports and personal conversations you already know this. I am sure you will make the correct adjustments for the health of your great business!

Thank you for the ideas. Maybe that is possible but I wonder if Nikon and Canon would sell to a business as small as we are? Anymore, big companies only sell to big companies. In the fly fishing business, our manufacturers are mostly small. Orvis is fairly large but nothing like Nikon, Canon or Pentax. I don't know. Maybe someone on the board would know.

A guy who owns a chain of camera stores in New England offered to buy our building once for a lot of money back when the bubble was growing. I told him it was not for sale but we are still acquainted. I talked to him maybe a month ago. He wants to open a photo retail store and a photography school in Townsend and a building like ours would be perfect. I offered him a set of our plans for free, told him who built it and showed him the property across the street that is for sale. Having a store like that near us would be great for our business and property value. I hoped he would do it and maybe he will. But, with an inventory like he would have to carry, buying the land and his construction costs, he is looking at $2 million or more. I bet he waits awhile but I don't think the cost would discourage him at all in a strong economy.